U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-06-2015, 11:42 AM
 
87 posts, read 48,943 times
Reputation: 61

Advertisements

I went to the SS .gov site and found a calculator to run the numbers my self but one parts of the chart talks about spousal benefits. Full Retirement Age: If You Were Born Between 1943 And 1954 . If she files now it says she would get 45.8 percent but I assume that was if she was starting spousal benefits now. Assume easy numbers that she starts now and it costs her $30 a month. When I file at 66 and I get $ 2400 she would get $ 2400 - $ 30 dollars? Is that correct? Sorry for all the questions but it's all a little overwhelming . I will learn.

Thanks Ivan
Reply With Quote Quick reply to this message

 
Old 04-06-2015, 01:06 PM
 
Location: Mount Airy, Maryland
10,478 posts, read 5,941,871 times
Reputation: 16173
Don't apologize, we're all here to learn. I am watching this thread closely as I've been trying to figure it out too. And you are the first person I've come across who is in our situation of having the husband, and major earner, younger than the wife. Every example I have read has the husband as older or the same age.

As for your last question if I read correctly once your wife files early she will never get 1/2 of your FRA benefit. By the way it is always half of yours, in this case $1,200 not the full $2,400. They will deduct for payments she has already received. I'll wait for smarter people than me to elaborate on just how large that deduction is.
Reply With Quote Quick reply to this message
 
Old 04-06-2015, 01:14 PM
 
87 posts, read 48,943 times
Reputation: 61
So I'm the only one on here who likes older women :-) . This way we might die around the same time.

I understand she won't get half but if it's the 30 dollars a month she will lose by filing early then it's not a big deal. If it's much more we might wait.
Reply With Quote Quick reply to this message
 
Old 04-06-2015, 01:17 PM
 
Location: Cape Elizabeth
425 posts, read 388,445 times
Reputation: 745
Quote:
Originally Posted by DaveinMtAiry View Post
You can go to the SS site and input the figures to get your actual benefit by waiting an additional 4 months. But the benefits increase by 8% after FRA so basically 8% more than $2,400. As for your wife it depends on what her FRA is. It goes up the younger you are as a way of preserving the SS reserves.

No, that is not quite right, because to get the full 8%, you must delay your retirement by 12 months. Each month after FRA, you get a portion of the 8%. So, in his case, he gets an additional 2.67% (or 102.67%) of his amount at FRA which brings his $2400.00 to $2464.00.
Reply With Quote Quick reply to this message
 
Old 04-06-2015, 01:30 PM
 
87 posts, read 48,943 times
Reputation: 61
I did find that and I assume that would make up the $30 ish my wife would lose by filing early but at my FRA plus 4 months will she get about $1200 or will it be less because she filed 14 months before her FRA? I think that's my main question at this time.

Thanks Ivan
Reply With Quote Quick reply to this message
 
Old 04-06-2015, 01:44 PM
 
Location: Cape Elizabeth
425 posts, read 388,445 times
Reputation: 745
Quote:
Originally Posted by Im45us View Post
I went to the SS .gov site and found a calculator to run the numbers my self but one parts of the chart talks about spousal benefits. Full Retirement Age: If You Were Born Between 1943 And 1954 . If she files now it says she would get 45.8 percent but I assume that was if she was starting spousal benefits now. Assume easy numbers that she starts now and it costs her $30 a month. When I file at 66 and I get $ 2400 she would get $ 2400 - $ 30 dollars? Is that correct? Sorry for all the questions but it's all a little overwhelming . I will learn.

Thanks Ivan
Ok, Ivan, in order for your wife to get spousal benefits, you must get benefits. She can get her own retirement now, but the portion she gets on you later,(spousal) is based on 1/2 of your "full"- the $2400.00. Because she is older and you are working until 66, she will already be 66, so the extra $630.00 she gets (the way SSA calculates her spousal is: you take 50% of your FRA amount ($2400), which is $1200, then subtract her full amount which is $570.00 and that leaves $630, which is added to what she is already receiving on her own retirement, which is either $525 this month or $531 in June 2015 or $570.00 in June 2016. But remember, the extra $630 is not added until you begin to collect- in September 2020, or thereabouts.
Reply With Quote Quick reply to this message
 
Old 04-06-2015, 04:40 PM
 
Location: Cape Elizabeth
425 posts, read 388,445 times
Reputation: 745
Quote:
Originally Posted by Im45us View Post
I am glad I found this site. I will have to do some more homework. I am reading " Get what's yours " so hopefully will get more info there. I will turn 66 on September 7, 2020 and will work till end of year is my plan. I know no one knows when they will die but my wife and I both have some longevity in our genes so who knows. If my expected benefit is $2400 at FRA how much extra would it be waiting almost 4 months longer? It might more than make up the difference of what my wife will lose by taking her benefit at 65 instead of 66. Thanks again. P.S. I think I found your other post " Ilovemycat "

I think my wife might start collecting at 65 instead of 66. She turns 65 on June 7 of this year. When should she apply?
If you wait until January 2021 (4 months past your FRA of September, 2020), your $2400.00 is increased by $64.00 to $2464.00. But, let's first talk about your options at your 66th birthday, knowing your wife is already over 66 and already collecting her own retirement since age 65 of $531.00.

You have a number of options at 66. You can file and suspend, so your wife can get her additional $630.00 based on your FRA of $2400.00 and so you can wait until 70 to collect an additional 32% on your $2400.00. Yours at 70 becomes $3168.00. You can also file for husband's benefits at 66 and get 1/2 of your wife's $570.00, which is 235.00 per month.

So, if you did this scenario- (option A) this is what your SS would be when you are 66- your wife would be getting $531.00 (I picked her own age 65 amount), plus $630.00 from your record and you would get $235.00 from her record. That is a total of $1396.00.

Or, SS at 66, it could be thisoption B) your wife would be getting $531.00, plus $630.00 and you get $2400.00. That is a total of $3561.00.

If you pick option A- you get to have Option C - at 70: your wife is getting $531.00, plus $630.00 and you get $3168. At 70 that is a total of $4329.00.

So, let's see how this shakes out: If you take option B, you never get option C and when you die your wife goes to $2400.00. If you take option A, and then option C, when you die your wife goes to $3168.00.

Now. let's compare the gain/loss with option A vs option B. In doing the gain/loss I don't include your wife's own $531.00. So at 66 you have benefits of $865.00 (630 + 235) vs. $3030.00 (2400 + 630).
$865 x 48 = $41,520.00.
$3030 x 48 = $145,440.00.
Your initial loss is $103,920.00. At 70 you gain the difference of $768.00. (The difference between $3168 and $2400.00.) Divide the loss by the gain to see how long it takes you to make up that loss- you eat it up beginning at 70, by getting the extra $768.00 every month. It takes 135 months or 11.2 years from 70 to make it up. Then each month you live past 81.2, you are ahead by $768.00.

You said you had longevity in your family. It might be worth it. It is also what makes it hard. It also assumes you guys can live on the option A amount once you stop working. If you were going to work until 70, option A is a real possibility. Otherwise, the numbers in Option B make a lot more sense.

But, you could do Option A just for 4 months, until January, 2021, which you asked about.

Here is the gain/loss for that scenario: 865 x4 = $3460.00. $3030 x 4 =$12120.00. Initial loss of $8660.00, Gain of $64.00 (difference between 2400 and 2464.) Divide 8660 by 64 = 135 months which is 11.2 years from 66+4 to make it up. At 77.6 you have made up the loss. At your death, your wife goes to $2464.00.

I think that is enough info for this post. If you have questions, let me know. One more point to reiterate: a wife, or husband, does not get the benefit of delayed retirement credits while the worker is still alive. They do get the benefit of delayed retirement credits at the time of the worker's death. So, that is why, no matter what you decide to do, your wife's benefit is her own reduced retirement, and an additional $630.00.
Reply With Quote Quick reply to this message
 
Old 04-06-2015, 04:43 PM
 
Location: Cape Elizabeth
425 posts, read 388,445 times
Reputation: 745
I don't know why I have that emogee on option B. I guess I hit a button and don't know how to get rid of it. It should not be there and sad face does not reflect my opinion.
Reply With Quote Quick reply to this message
 
Old 04-06-2015, 05:20 PM
 
Location: OH>IL>CO>CT
5,243 posts, read 8,427,372 times
Reputation: 7191
Quote:
Originally Posted by ilovemycat View Post
I don't know why I have that emogee on option B. I guess I hit a button and don't know how to get rid of it. It should not be there and sad face does not reflect my opinion.
See this thread re Editing a post after you've posted it.

How do I edit my own posts?

BTW, keep up the good work
Reply With Quote Quick reply to this message
 
Old 04-06-2015, 10:05 PM
 
30,165 posts, read 47,394,029 times
Reputation: 16115
This link is to the PBS web site and articles/Q&A done by Lawrence Kotlikoff who is recognized economist and who has written several books on investments and on social security

https://www.maximizemysocialsecurity.com/press-articles
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top